Producers can vary the capital they use in order to choose the SRAC that they want to be on in the
A) immediate run
B) short run
C) long run

Question

Quizplus · Accepted Answer

The long run allows producers to adjust all factors of production, including capital. This means they can choose the most efficient scale of production and thus the lowest possible SRAC. In the short run, at least one factor of production is fixed and the producer is unable to adjust capital as freely, limiting their ability to choose a specific SRAC. The immediate run is not a valid economic term.

Producers Can Vary the Capital They Use in Order to Choose